learning is sensitive to the stance taken on agents beliefs at the beginning of the sample. The New Keynesian model is … estimated under rational expectations and under learning with three different frameworks for how expectations are set at the … post-war United States. The results indicate statistical evidence for adaptive learning, however the rational expectations …

have rational expectations, but instead form expectations through least squares learning with an endogenously changing … learning gain. It has been suggested that this type of endogenously changing learning mechanism can create periods of excess … large variances for structural shocks, and the other state has relatively smaller variances. To assess whether learning can …